Jagran Prakashan Limited has received Show Cause Notices (SCN) dated 30th May, 2024 accessed by the Company on 31st May, 2024, from the Joint Commissioner, State GST, Kanpur under section 73(1) of the Central Goods and Services Tax Act, 2017 (the Act). The SCN requires the Company to show cause as to why alleged GST Demand of INR 1,966,672,528 and penalty of INR 196,667,249 along with applicable Interest for the period April 2019 to March 2020 should not be demanded from the Company. The Company, based on legal advice, believes that it has a strong case on merits and shall accordingly respond to the SCN.

SCN inter-alia seeks tax payment/clarification on the following allegations: Difference in the taxable turnover reported in GSTR-1 and monthly GSTR-3B. Entitlement of Input Tax Credit availed by the Company and corresponding reconciliation with various parameters mentioned in the SCN Reconciliation difference between values reported in monthly returns with corresponding annual return. Taxability on credit balances appearing in Trial Balance under different GL code.